Insurers offer green incentives

Climate change seen as costly to industry

“How does a rule like that incentivize anybody who drives, say, 12,000 miles per year to reduce their driving,” Heller said. “They'll never get down to 7,500, so why try?”

Although low-mileage drivers stand to get lower insurance rates thanks to pay-as-you-drive, some of the biggest benefits may go to the insurers, who will be able to use more comprehensive mileage data when setting rates.

In fact, insurers see a number of benefits from climate change. A report last month by the Insurance Information Institute of New York — an affiliate of the California institute — found that “opportunities exist on several fronts” from climate change, including the creation of whole new industries, such as alternative fuel facilities, that will need new forms of insurance.